RetireMentors

Financial Planning

Women in transition: Where do I start?

Larry Stein is the founder and CEO of
Disciplined Investment Management,
an investment advisory firm that caters to high net worth clients in Chicago’s
North Shore suburbs. Since most of the firm’s clients are either retired or
planning to retire in the next five-15 years, Larry is committed to managing
risk, achieving their goals, and giving them peace of mind. The firm also works
closely with women in transition, particularly widows and divorcees, providing
high levels of personal care. The CFP Board Ambassador for Chicago, Larry is the
author of two investment books. His most recent work is "Peace
of Mind Investing," which is also written for retirees and those planning to
retire. You can follow him on Twitter:
@LSteinInvest and
Facebook. He
can be contacted through his website:
Disciplined-Investment.com.

You may have juggled a zillion family responsibilities both in and out of the house. But chances are you didn't handle everything.

Perhaps your husband handled the investments. Or dealt with advisers, such as a CPA or a lawyer. But now, after a divorce or the death of your husband, are you prepared to take over the entire financial picture? Do you have the trusted professionals in place to guide you through this process? Will they take the time to teach and empower you, so you can handle things on your own? Maybe not.

Where do you even start?

"Women in transition tend to face some different challenges than their male counterparts. Just as some men are new to handling the household, some women are new to handling outside-the-house matters, such as investments, taxes and legal matters,” says Susan Stein, who directs The Women’s Group at our firm, Disciplined Investment Management. “Now, all of a sudden, sometime without much or any warning, it's all thrust onto her plate. It's quite an adjustment for many women, and can be overwhelming at first. Over time, of course, many women become very adept at handling their affairs, which is really inspiring to see."

Here are four initial steps to consider:

Breathe: Resist the temptation to conquer the world right away. You don't have to. Sure, you may need to take care of some things immediately, but most items can wait. You may even find salespeople of various types knocking on your door, suggesting that they will take your hand and lead you to prosperity and peace of mind. Don't jump into action; you've been through a lot. Start slow. Start with a highly qualified, trusted adviser.

Get a trusted adviser: A trusted adviser could be a lawyer, CPA, investment adviser, or other professional. The type of professional is less important than the quality of the individual. You want someone who is well-qualified, well-networked and trustworthy. They may not have all the answers, but they can refer you to other quality professionals who do.

Build a team of advisers: Ask the trusted adviser to help you build a team of professionals around you. Initially, the team may include an estate planning lawyer, CPA and investment adviser. Eventually, your team will grow and could include insurance, banking, wellness and other professionals.

Develop a plan of action: While you may have to handle some matters initially, it's best to work from an action plan rather than react hastily with random, knee-jerk decisions. Otherwise, you may have to undo some of those early moves. Let your trusted adviser and other professionals guide you in the development of the plan, but don't rubber-stamp their suggestions. Take control of the plan. Critically evaluate the cost and timing of each action. Grab the initiative and learn what you need to know so you can empower yourself going forward.

Transition isn't easy, but it can be a gratifying, growth experience. You may even find strengths and capabilities you didn't think you possessed. In the weeks ahead, we will delve into greater detail on divorcées, widows, retirement and other women in transition.

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